Did Wrapped Bitcoin (WBTC) Make a Full Recovery after Yesterday’s Flash Crash? - Forex News by FX Leaders
Wrapped Bitcoin

Did Wrapped Bitcoin (WBTC) Make a Full Recovery after Yesterday’s Flash Crash?

Posted Thursday, July 14, 2022 by
Timothy St. John • 2 min read

The crypto market fell sharply yesterday, causing many investors to panic as they saw a straight line drop in the early morning hours. Wrapped Bitcoin was among the many crypto coins that plummeted at that point, but this token is up today.

WBTC/USD

How Is WBTC Doing after the Drop?

The bearish market took a turn yesterday that caused (WBTC) Wrapped Bitcoin to fall 4.15%. That happened in a very short space of time, which is what made this a flash crash rather than just another day in the crypto market.

Wrapped Bitcoin fell from $19,883 to $19,056 in that time, but today it is back up to 19,730. The WBTC rate has increased 2.41% over the last 24 hours. This might seem just short of a full recovery, but it’s a great bounce back for the coin. Not all cryptos have managed to do that after yesterday’s surprise fall.

The good news for WBTC investors is that not long after the crash, the Wrapped Bitcoin rate rose to $20,289. It has fallen since then, but that is quite the turnaround after what happened yesterday.

It is safe to say that Wrapped Bitcoin did make a full recovery, but it hasn’t quite held on to its gains. This coin is doing well for the moment, but could that be changing soon?

Where Is WBTC Going from Here?

Wrapped Bitcoin follows in Bitcoin’s (BTC) tracks, as this token is a stablecoin that is connected to what Bitcoin is doing. It is supposed to mirror that larger coin, so to say that Wrapped Bitcoin is doing well would be to say that Bitcoin is performing well too.

Wrapped Bitcoin handled this flash crash well, demonstrating some resiliency, but it is a volatile coin at the moment. The 7-day total is mostly poor, with the coin moving forward steadily. The 30-day outlook is a little better, with some serious ups and downs that show Wrapped Bitcoin is worth investing in.

Looking at the year-to-date numbers, though, we see a decline overall. However, this coin held on to its gains better than most of the crypto market, so once again, there is some reason to invest. We don’t suggest long-term investments at the moment, though. Instead, traders are more likely to make their money back if they look at trading short term, buying low and then selling as soon as the price goes up to a temporary peak. Overall, Bitcoin, Wrapped Bitcoin, and the crypto market are in a bearish phase that is lasting longer than most people expected it to.

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